HMRC's reply letter to 2019 Loan Charge lobbyist

Dear Mr Packham

Thank you for your letter of 13 June 2018 to the Chief Executive. I am replying on his behalf.

We recognise that the charge on disguised remuneration (DR) loans will have a significant impact on some people who have used DR schemes, and that even small tax liabilities can be life-changing for some individuals. Those who have avoided the most tax, or used schemes over multiple years, will of course have more to pay.

We want to help people put their tax affairs right. We are actively encouraging anybody who is worried about being able to pay what they owe to get in touch with us as soon as possible. We have an outstanding record of supporting those who are [sic] genuinely cannot pay what they owe, but we can only help those who come forward.

We know that some customers will struggle to pay all the tax in one go.  Customers should tell us as soon as possible if they think they will struggle to pay. We will consider all personal circumstances to agree a manageable and sustainable payment plan wherever possible .

We recognise that some people will face significant bills, and take our duty of care very seriously. We have guidance and training in place for our teams on how to provide support for vulnerable people, and those who are worried or anxious about their tax affairs. We also work closely with mental health charities, to improve how we help these individuals.

I would urge anybody who is concerned about their finances to come and talk to us as soon as possible. I would be grateful if you could pass on the telephone number of our dedicated line for exiting avoidance schemes – 03000 530 435 – to anyone who approaches you about their concerns over their tax bill. The helpline is open from 8.30am to 4pm, Monday to Friday.

Yours sincerely

Julie Elsey   

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Written by Simon Moore

Simon writes impartial news and engaging features for the contractor industry, covering, IR35, the loan charge and general tax and legislation.
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